Finland links speeding fines to income. I'd like to see something that get far broader application. That prevents the wealthy or huge corporations from seeing lawbreaking as a business cost, without destroying a small business or individual who commits the same crime.
Proposals like this are how you get the billionaire paying their chauffeur's $50 fines so they can get everywhere faster while sticking some small business owner in an industry with feast or famine years with a $50,000 ticket for having a slightly miscalibrated speedometer.
Creating new arbitrage opportunities benefits the powerful, not the weak.
It is a common complaint that fixed penalties are just the fee the rich get to pay to break the law. Doubly so for big corporations especially when the penalties are less than the gain they got doing the harm.
It sounds like you're implying that it is impossible to create a system that makes penalties scale instead of just being a fee because the system will always be gamed.
Do you believe that or did I misunderstand you?
It's a common complaint but the complaint is ridiculous because the penalties already scale with the scope of the activity. It's typical when you sue a corporation for the penalty for willful violations to be treble damages, i.e. three times the actual damages. If you rip customers off by $10,000 then you pay $30,000. If you're huge and rip customers off by $10 billion then you pay $30 billion.
Whereas the proposal is typically to make the penalties scale with entity size, which a) is actually easier to game than the scope of the harmful activity, and b) does a bunch of things that make no sense, like increasing the amount of the fine for an oil spill if the company also generates additional revenue from producing solar panels.
The reason we run into trouble here usually isn't that the penalties are wrong, it's that the enforcement is weak. If you can steal $10 billion with only a 10% chance of enforcement that requires you to give back $30 billion then your expected value is an $8 billion gain. But that has nothing to do with the scale of the business. The exact same thing happens to with a company that steals $10,000 with only a 10% chance of enforcement.
And using disproportionate penalties doesn't really fix it either, because then they just roll the dice and file for bankruptcy if they encounter enforcement. You can't fine them more money than they actually have. When the rate of enforcement is too low, that isn't enough to make them comply, because a small chance of -100% is profitable against a large chance of +50%. Whereas if enforcement is consistent then disproportionate penalties aren't even necessary.
This isn't arbitrage, it's looking for loopholes.
Presumably your "feast or famine" business owner did the responsible thing with leveling their income, no? They didn't? Oh, why would that be the public's concern. That would level out in their feasting years, after all (assuming you're using the previous year's taxable income, or an average income over the previous three years or so).
The chauffeur is subject to the rules around their CDL or similar, or is in service of their employer. When driving a work vehicle, my fines are already directed at my employer.
It blows my mind how much we are willing to bend over backwards to ensure the powerful won't suffer a moment's inconvenience in this country.
"John Steinbeck once said that socialism never took root in America because the poor see themselves not as an exploited proletariat but as temporarily embarrassed millionaires."
Not quite how he phrased it, but close. Original is here: https://wist.info/steinbeck-john/46582/
In the US speeding can lead to your license being removed and then you can't drive at all. Speeding is not just a fine.
Again, this is a wealth tax. Rich get driven around and don't loose their jobs for loosing their license. Try being poor though and having this happen.
Edit: should have said 'poor tax'